2006 Code of Virginia § 22.1-157 - Insurance; required opinion of counsel

22.1-157. Insurance; required opinion of counsel.

A. The loans made under this chapter, including interest thereon, shallconstitute a specific lien on the building and additions thereto for whichsuch loan was made as well as the lots where the buildings are situated;however, in the case of a school board which enters into a long-term leasewith an agency of the United States government for land with the intention touse such land for construction of a school, the loan shall constitute aspecific lien on only the building and additions thereto. A memorandum oflien shall be duly recorded in the appropriate circuit court. A restrictionon the use of the land for public school purposes shall not be deemed tooperate as an encumbrance nor shall such a restriction defeat this lien. Norecordation tax shall be assessable. For the purposes of this section,"long-term lease" means a lease for a term of twenty-five years or more.

B. The school board shall keep all buildings constructed with funds borrowedfrom the Literary Fund fully and adequately insured for the benefit of theLiterary Fund, and proof of the existence of the policy or policies ofinsurance shall be obtained by the insured from the insurer in a formsatisfactory to the State Superintendent of Public Instruction.

C. The Board shall not disburse any proceeds of any approved loan prior toits receipt of an acceptable opinion of bond counsel obtained by the localgoverning body as to the validity of the loan and the tax-exempt status ofthe interest on such loan under federal income tax laws.

(Code 1950, 22-102, 22-114; 1956, c. 184; 1971, Ex. Sess., c. 128; 1980,c. 559; 1981, c. 191; 1982, c. 340; 1998, c. 719; 1999, cc. 695, 748.)